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(very simplified answer to a complex area)
The Dow indices and others represent valuation of a set basket of company stocks. Hypothetically, is a company's worth were entirely in its public stock shares, and the company had 10000 shares in the public domain priced at $100 per share, the company's perceived value is 10000*100 or $1,000,000 (a million dollars).
As with other commodities, when many wish to sell but few wish to buy, the selling price see downward pressure, and vice versa.
So for a down day, pressure was being seen in the sell direction, theoretically indicating less confidence in the product for any number of possible reasons.
So, during such a sell off, as the price paid (effectively for representative pieces of companies) drops, the value of those companies is diminished.
The general hope is that with increases in worker productivity and sales, a company's net worth will increase in the long run, on average. This is the pattern seen in the Stock Market indices over the past decades.
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What is the record one day drop for the Dow?
On September 29, 2008, the Dow dropped 777.68 points.
How much was the Dow down 2008?
DOW INDU aT END OF 2008 (12/31) WAS DOWN 4488.43 FROM END OF 2007
Is it true that the Dow Jones fell more than 500 points by the closing bell this Monday September 15th?
Dow 10,917.51 -504.48 (-4.42%)
What did the DOW close at on September 9 2009?
It closed at 9547.22 up 50 points
By how many points did the Dow Jones Industrial Average drop during Black Monday?
The Dow jones Industrial Average usually drops by 38 points during Black Monday. This example can be seen in the Wall Street Crash of 1929 where figures drop by nearly 13%.
What is Meant by The Statement The Market is Down 15 Points?
The Dow Jones Average is Down 15 Dollars
Where did the Dow stock market close on April 15 2013?
The Dow stock market closed 266 points down on the 15th of April 2013. The Dow had already fallen 146 points when the Boston Marathon explosions took place at approximately 3pm, after this it fell another 120 points.
What does it mean for stockholders when the Dow Jones Index is down?
If they do have stocks in the Dow Jones, they will lose invested money.
On October 19 Black Monday the Dow Jones Industrial Average plunged 508.32 points dropping 22.6 In what year was this?
1987 On Black Monday the Dow Jones Plunged down the drain a whopping 508 points and then the economy starts to go down with it.
What nicknames does Greg Dow go by?
Greg Dow goes by CBJamocha Yellow, Gtd Rea, and DOW chicka dow dow.
What nicknames does Marlon Dow go by?
Marlon Dow goes by Buttons.
What nicknames does Matthew Dow go by?
Matthew Dow goes by Matt.
What is the record one day drop for the Dow?
On September 29, 2008, the Dow dropped 777.68 points.
Are the letters in Dow of Dow Jones mean a name?
Charles Dow was the co founder of Dow Jones News.
What is the song called that goes Down like the temperature?
the song is called Dow by Jay Sean the part that you are talking about is where lil Wayne sings
How much was the Dow down 2008?
DOW INDU aT END OF 2008 (12/31) WAS DOWN 4488.43 FROM END OF 2007
Explain how the points in stock exchange fall and rise?
Point are equal to the US DOLLAR so 50 points is equal to $50.00 the DOW JOW INDUSTRIAL AVERAGE tracks 30 of the larges companies so when the market is reporting its down 30 points the overal average stock is down about $30.00
